Bi-Lo Cites Southeast Growth in IPO Filing

JACKSONVILLE, Fla. — The Southeastern U.S. stands to get an economic boost from state and local governments investing to attract businesses, which will serve to create a fertile growth environment for Bi-Lo and Winn-Dixie, the parent company of the chains said in filing for an initial public stock offering on Thursday.

Filing under the name Southeastern Grocers LLC, the company also noted that the region’s high penetration of discount operators like Wal-Mart and dollar stores indicate that such players are likely to pursue a higher rate of growth in other regions in the future.

“We believe we have developed an effective strategy and shopping experience to compete with these formats, as evidenced by our consistent positive pro-forma comparable store sales growth over the past several years,” Southeastern Grocers said in the filing.

The number of shares and price range for the IPO, which was previously reported to have been in the planning stages, has not yet been determined. The company is owned by Dallas-based private investment firm Lone Star Holdings.

The company could seek to raise up to $500 million in the offering, according to reports.

In the prospectus, Southeastern Grocers also cautioned that it carries relatively high levels of debt and fixed-lease obligations, citing $1.36 billion in total consolidated indebtedness and another $1.1 billion in other current and non-current liabilities.

It is in the process of acquiring 155 Sweetbay, Harveys and Reid’s stores from Delhaize Group, and another 21 Piggly Wiggly stores from Piggly Wiggly Carolina. It currently operates 685 supermarkets in Florida, Georgia, Alabama, Louisiana, Mississippi, South Carolina, North Carolina, and Tennessee, with net income of $103.1 million on sales of $8.6 billion in 2012.